Goolsbee echoed remarks from earlier this week that he was concerned about high services inflation seen in Tuesday’s consumer price index report for July. But he said it’s important not to overreact to one month of data, including figures out Friday showing import prices climbed last month.
Also Read: Trump eyes 11 candidates to replace Fed Chair Powell in 2026: All you need to knowFed officials have kept interest rates on hold this year as they wait to see how changes in tariffs and other policies impact the US economy. Investors are betting they will resume rate cuts at their next meeting in September, according to interest-rate futures.
Goolsbee said he wants to wait for more economic data to come in, adding there are “still a lot of strengths in the economy.”
“I do think we’re going to be in the business of trying to figure out which part of these price increases are we’re ignoring because we think they’re transitory, and which ones are we’re responding to,” Goolsbee said. “If we keep getting inflation reports like the first two out of the four [this month]I would be very comfortable that the dust is out of the air.”
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Goolsbee’s comments come after Commerce Department data showed Friday that US retail sales rose in July in a broad-based advance. The value of retail purchases, not adjusted for inflation, increased 0.5% after an upwardly revised 0.9% gain in June. Excluding cars, sales climbed 0.3%.
